It was a tough week for the markets, with fear hanging in the air over the fate of the Federal Reserve's bond-buying program and over last week's market stumble. Both the Dow Jones Industrial Average (DJINDICES: ^DJI ) and the S&P 500 posted their worst weeks of the year, after declining 2.23% and 2.1%, respectively. The blue chip index lost 344 points over the past five days, with the worst single-day slide of 225 points coming on Thursday. The Nasdaq also lost 1.56% this past week, held at a reasonable loss thanks to Apple and the multimillion-dollar Tweet from Carl Icahn.
Before we hit the Dow losers, let's look at this week's best-performing component. Caterpillar (NYSE: CAT ) , with a gain of 0.77%, was the only Dow stock that rose this past week. As gold, silver, and platinum rise, the value of the mining equipment Caterpillar makes also rises, and if prices can sustain their current levels, we're likely to see increased orders for its machinery as more people try to dig gold out of the ground. �
Hot Performing Companies To Watch In Right Now: Rexnord Corp (RXN)
Rexnord Corporation (Rexnord), incorporated on July 13, 2006, is a multi-platform industrial company. The Company comprises of two platforms, Process & Motion Control and Water Management. Rexnord�� Process & Motion Control product portfolio includes gears, couplings, industrial bearings, aerospace bearings and seals, FlatTop chain, engineered chain and conveying equipment, and are marketed and sold globally under brands, including Rexnord, Rex, Falk and Link-Belt. Its Water Management platform operates in the commercial construction market for water management products and the municipal water and wastewater treatment markets. Its Water Management product portfolio includes drainage products, flush valves and faucet products, backflow prevention pressure release valves, PEX piping and engineered valves and gates for the water and wastewater treatment markets. These products are marketed and sold through brand names, including Zurn, Wilkins, VAG, GA, Rodney-Hunt and Fontaine. In August 2013, Rexnord Corp announced that it has acquired the assets of Micro Precision Gear Technology Limited. In December 2013, Rexnord acquired Precision Gear Holdings, LLC (PGH). PGH has two operating subsidiaries, Merit Gear LLC and Precision Gear LLC.
Process & Motion Control
The Company�� Process & Motion Control platform designs, manufactures, markets and services mechanical components used within complex systems. The Company sells its Process & Motion Control products into a diverse group of end markets, including mining, general industrial applications, cement and aggregates, agriculture, forest and wood products, petrochemical, energy, food and beverage, aerospace and wind energy. The Company is a manufacturer of gear drives and gear sets for the heavy duty industrial market. Its gear drives, service and gear sets are used in a number of heavy duty industries. These primary industries include the natural resource extraction, steel, pulp and paper, chemical, forest and wood industries. ! Rexnord manufactures a range of heavy duty, medium and light duty gear drives used for bulk material handling, mixing, pumping and general gearing applications. It also operates a gear service and repair business through its Product Service group (Prager and Renew). Its Couplings are primarily used in high-speed, high-torque applications and are the interface between two shafts that permit power to be transmitted from one shaft to the other. Rexnord�� couplings are sold to a range of end markets, including the petrochemical and refining, wood processing, chemical, power generation and natural resources industries. Couplings comprise of the grid, flexible disc, elastomeric and gear product lines and are sold under the Steelflex, Thomas, Omega, Rex, Viva, Wrapflex, Lifelign, True Torque, Addax and Autogard brand names.
The Company primarily produces mounted bearings, which are offered in a range of specialized housings to suit specific industrial applications. Its FlatTop chain provides a continuous conveying surface that is critical to high-speed operations, such as those used to transport cans and bottles in beverage-filling operations, and is primarily sold to the food and beverage, consumer products, warehousing and distribution, and parts processing industries. The Company supplies its aerospace bearings and seals to the commercial aircraft, military aircraft and regional jet end markets for use in door systems, engine accessories, engine controls, engine mounts, flight control systems, gearboxes, landing gear and rotor pitch controls. Rexnord�� aerospace bearings and seals products consist of rolling element airframe bearings sold under the Shafer brand name, slotted-entry and split-ball sliding bearings sold under the PSI brand name and aerospace seals that are sold under the Cartriseal brand name, which are primarily sold for use in both aerospace and industrial applications.
The Company�� special components products consist of three primary product lines: electri! c motor b! rakes, miniature Process & Motion Control components and security devices for utility companies. These products are manufactured by its businesses, such as Stearns, W.M. Berg and Highfield. Stearns��products are used in a range of applications, including steel mills, oil field equipment, pulp processing equipment, large textile machines, rubber mills, metal forming machinery and dock and pier handling equipment. W.M. Berg sells its products to a range of markets, including aerospace, semiconductor, medical equipment, robotics, instrumentation, office equipment and satellite communications. Highfield�� products are sold to a range of markets, including electric, gas, water, telecommunications, utilities and plumbing and heating.
The Company�� conveying equipment and industrial chain products are used in various applications in a number of industries, including food and food processing, beverage and container, mining, construction and agricultural equipment, hydrocarbon processing and cement and aggregates processing. Its primary products include conveying equipment, engineered steel chain, and roller chain. Its conveying equipment product group provides design, assembly, installation and after-the-sale services primarily to the mining, cement and aggregates industries. Its products include engineered elevators, conveyors and components for medium to heavy duty material handling applications. The Company�� engineered steel chain products are sold under the Link-Belt and Rexnord brand names. These products are used in a number of applications, including cement elevators, construction and mining equipment and conveyors, and they are supplied to the cement and aggregates, energy, food and beverage, and forest and wood products industries.
Water Management
The Company�� Water Management platform designs, procures, manufactures and markets products that provide and enhance water quality, safety, flow control and conservation. The Water Management product port! folio inc! ludes professional grade specification drainage products, flush valves and faucet products, engineered valves and gates for the water and wastewater treatment market and PEX piping and are marketed and sold through brand names, including Zurn, Wilkins, VAG, GA, Rodney Hunt and Fontaine. Rexnord�� Water Management platform has a network of approximately 1,100 independent sales representatives across approximately 210 sales agencies in North America, who work with local engineers, contractors, builders and architects to specify its products for use in construction projects. Its water control and safety products are sold under the Wilkins brand name and encompass a variety of valves, including backflow preventers, fire system valves, pressure reducing valves and thermostatic mixing valves. These products are sold into the commercial and industrial construction applications, as well as the fire protection, waterworks and irrigation end markets.
Zurn�� commercial brass products include manual and sensor operated flush valves marketed under the Aquaflush, AquaSense, AquaVantage and HydroVantage brand names and heavy duty commercial faucets marketed under the AquaSpec brand name. Water conserving fixtures are marketed under the EcoVantage and Zurn One brand names. These products are used in office buildings, schools, hospitals, airports, sports facilities, convention centers, shopping malls, restaurants and industrial production buildings. The Zurn One Systems integrate commercial brass and fixtures into plumbing systems. PEX is its product line manufactured out of cross-linked polyethylene into tubing and is suited for high temperature and pressure fluid distribution piping. Its PEX products include lines of pipe, fittings, valves and installation tools for both potable water and radiant heating systems. Its water and wastewater products are sold under the VAG, GA, Rodney Hunt and Fontaine brand names and are used to control the flow of water and wastewater throughout the water cycle from ra! w water t! hrough collection, distribution and wastewater treatment. Products include automatic control valves, check valves, air valves, butterfly valves, water control gates, hydrants, actuation systems, and other specialized products for municipal, industrial, and hydropower applications. Its product lines are primarily sold into the water supply and treatment markets worldwide.
Advisors' Opinion:- [By Seth Jayson]
Rexnord (NYSE: RXN ) reported earnings on May 21. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q4), Rexnord met expectations on revenues and beat expectations on earnings per share. - [By gurujx]
Rexnord Corp (RXN): SVP & CFO Mark W Peterson Sold 35,983 Shares
SVP & CFO of Rexnord Corp (RXN) Mark W Peterson sold 35,983 shares on 09/19/2013 at an average price of $20.03.
- [By Seth Jayson]
Calling all cash flows
When you are trying to buy the market's best stocks, it's worth checking up on your companies' free cash flow once a quarter or so, to see whether it bears any relationship to the net income in the headlines. That's what we do with this series. Today, we're checking in on Rexnord (NYSE: RXN ) , whose recent revenue and earnings are plotted below.
Top 5 Machinery Companies To Invest In 2014: Danieli & C Officine Meccaniche SpA (DAS)
Danieli & C Officine Meccaniche SpA is an Italy-based company primarily engaged in industrial sector. The Company designs, manufactures, sales and makes installation of machines and plants for the metallurgical industry. The Company's portfolio includes mines; pellet production plants; blast furnaces; direct reduction equipment; machinery for the treatment of scrap metal; steelworks for production of liquid steel; continuous casting machinery for blooms, billets and slabs; rolling mills for long products, seamless tubes and flat products; production lines for welded tubes and flat products; plants for secondary processing, such as peeling, rolling and drawing; forging presses and manipulators; extrusion presses for ferrous and non-ferrous metals; plants for longitudinal and transversal cutting; automation and control systems, and cranes and lifting equipment. It is also active in the production and sale of special steel for automotive, machine tools and railway industry, among others. Advisors' Opinion:- [By Damian Illia]
Crown Castle has acquired recently the privately held company NextG Networks Inc., largest provider of outdoor Distributed Antenna Systems (DAS), with more than 7,000 DAS plus another 1,500 nodes in the pipeline, and over 4,600 miles fiber-optic cable�� transmission rights. Through this addition, the company has improved greatly its DAS network across 26 United States metropolitan areas. As NextG has only 1.7 tenants per network on an average and thus underutilizing its capacity, Crown Castle will increase customers with no integration and rearrangement costs. Another company�� big move was the acquisition of 9,700 wireless towers from AT&T Inc. (T) Located in the top 100 markets in the U. S. T-Mobile is likely to maintain its infrastructure in these towers for the next 10 years. On top of all, the recent conversion of business into a REIT has represented long term benefits for the company in terms of tax savings and enhancing shareholders��wealth.
Top 5 Machinery Companies To Invest In 2014: Chart Industries Inc (GTLS)
Chart Industries, Inc., incorporated on June 25, 1992, is an independent global manufacturer of engineered equipment used in the production, storage and end-use of hydrocarbon and industrial gases. The Company supplies engineered equipment used throughout the global liquid gas supply chain. It operates in three segments: energy and chemicals (E&C), distribution and storage or (D&S), and biomedical. The E&C and D&S segments manufacture products used primarily in energy-related and general industrial applications, such as the separation, liquefaction, distribution and storage of hydrocarbon and industrial gases. Through its BioMedical segment, it supplies cryogenic and other equipment used in the storage and distribution of biological materials and oxygen, used primarily in the medical, biological research and animal breeding industries.
The Company�� products, including vacuum insulated containment vessels, heat exchangers, cold boxes and other cryogenic components, are used throughout the liquid gas supply chain for the purification, liquefaction, distribution, storage and end-use of hydrocarbon and industrial gases. It is a manufacturer of standard and engineered equipment primarily used for low-temperature and cryogenic applications. The Company�� primary customers are multinational producers and distributors of hydrocarbon and industrial gases and their suppliers. The Company sells its products and services to more than 2,000 customers worldwide.
Energy and Chemicals Segment
The Company is a designer and manufacturer of cryogenic brazed aluminum and air cooled heat exchangers. The Company�� brazed aluminum heat exchangers are incorporated into assemblies and cold boxes to facilitate the progressive cooling and liquefaction of air or hydrocarbon mixtures for the subsequent recovery or purification of component gases. In hydrocarbon processing industries, its brazed aluminum heat exchangers allow producers to obtain purified hydrocarbon by-products, such ! as methane, ethane, propane and ethylene, which are commercially marketable for various industrial or residential uses. In the industrial gas market, its brazed aluminum heat exchangers are used to produce high purity atmospheric gases, such as oxygen, nitrogen and argon, which have diverse industrial applications. The Company�� air cooled heat exchangers are used in multiple markets to cool fluids to allow for further processing or to provide condensing of fluids, including hydrocarbon, petrochemical, natural gas processing, and power generation. Its compact Core-in-Kettle heat exchangers are designed to replace shell-and-tube exchangers, offering significantly more heat transfer surface per unit volume and improving the efficiency of chillers, vaporizers, reboilers and condensers in hydrocarbon applications including ethylene, propylene and LNG.
The Company is a designer and fabricator of cold boxes. Cold boxes are engineered systems used to reduce the temperature of gas mixtures to the point where component gases liquefy and can be separated and purified for further use in multiple industrial, scientific and commercial applications. In the hydrocarbon processing industry, its cold box systems are used in natural gas processing and in the petrochemical industry. In the industrial gas industry, cold box systems are used to separate air into its atmospheric components, including nitrogen, oxygen and argon, where the gases are used in a diverse range of applications, such as metal production and heat treating, enhanced oil and gas production, coal gasification, chemical and oil refining, the quick-freezing of food, wastewater treatment and industrial welding. The construction of a cold box system generally consists of one or more brazed aluminum heat exchangers and other equipment packaged in a box consisting of a structural metal frame encasing a complex system of piping, valves and instrumentation.
The Company designs and manufactures of engineered hydrocarbon process syst! ems speci! fically for those markets requiring cryogenic processing technology. These Concept-to-Reality process systems incorporate many of Chart�� core products, including brazed aluminum heat exchangers, Core-in-Kettles, cold boxes, vessels, pipe work and air cooled heat exchangers. These systems are used for global LNG projects, including projects in the United States and China for both domestic LNG production for diesel displacement and in the conversion of LNG import terminals to export terminals, and also for use in global nitrogen rejection units (NRU) and propane dehydrogenation (PDH).
Distribution and Storage Segment
The Company is a supplier of cryogenic equipment to the global bulk and packaged industrial gas industry as well as for energy-related applications. Its products span the entire spectrum of industrial gas demand from small customers requiring cryogenic packaged gases to large users requiring custom engineered cryogenic storage systems. Its products in the D&S segment include Cryogenic Bulk Storage Systems, Cryogenic Packaged Gas Systems, Cryogenic Systems and Components, LNG Applications, Beverage Liquid CO2 Systems, and Cryogenic Services. The Company is a supplier of cryogenic bulk storage systems (stationary tanks, trailers, and ISO tanks) of various sizes ranging from 500 gallons to 250,000 gallons. End use customers for its cryogenic storage equipment include industrial gas producers and distributors, chemical producers, manufacturers of electrical components, health care organizations, food processors and businesses in the oil and natural gas industries.
The Company is supplier of cryogenic packaged gas systems of various sizes ranging from 160 liters to 3,000 liters. Cryogenic liquid cylinders are used extensively in the packaged gas industry to allow smaller quantities of liquid to be easily delivered to the customers of industrial gas distributors on a full-for-empty or fill-on-site basis. Principal customers for its liquid cylinders are th! e same gl! obal industrial gas producers and the North American industrial gas distributors who purchase its cryogenic bulk storage systems. It has developed two technologies in the packaged gas product area: ORCA Micro-Bulk systems and Tri-fecta Laser Gas assist systems. ORCA Micro-Bulk systems bring the ease of use and distribution economics of bulk gas supply to customers formerly supplied by high pressure or cryogenic liquid cylinders. The Tri-fecta Laser Gas assist system was developed to meet the assist gas performance requirements for new high powered lasers being used in the metal fabrication industry. The Company�� line of cryogenic components, including VIP, engineered bulk gas installations, specialty liquid nitrogen (LN2), end-use equipment and cryogenic flow meters are recognized in the market for their reliability, quality and performance. These products are sold to industrial gas producers, as well as to a diverse group of distributors, resellers and end users.
The Company supplies cryogenic solutions for the storage, distribution, vaporization, and application of LNG. LNG may be utilized as a primary source of heat or power at industrial or residential complexes located away from a natural gas pipeline. LNG may also be used for peak shaving or as a backup supply at remote locations. It refers to its LNG distribution products as a Virtual Pipeline as the natural gas pipeline is replaced with cryogenic distribution to deliver the gas to the end user. It supplies cryogenic trailers, bulk storage tanks, tap-off facilities, and vaporization equipment specially configured for LNG into Virtual Pipeline applications. LNG may also be used as a fuel to power vehicles or ships. The Beverage Liquid CO2 Systems product line consists primarily of vacuum insulated, bulk liquid CO2 containers used for beverage carbonation in restaurants, convenience stores and cinemas, in sizes ranging from 100 pounds to 750 pounds of liquid CO2 storage. It also manufactures and market non-insulated, bulk fountain ! syrup con! tainers for side-by-side installation with its CO2 systems. Its beverage systems are sold to national restaurant chains, soft drink companies and CO2 distributors. Its primary competitors for bulk liquid CO2 beverage delivery systems are Taylor-Wharton and other producers of high-pressure gaseous CO2 cylinders. The Company operates locations in the United States and Europe providing installation, service, repair and maintenance of cryogenic products, including storage tanks, liquid cylinders, cryogenic trailers, cryogenic railcars, cryogenic pumps, cryogenic flow meters and VIP.
BioMedical Segment
The Company�� BioMedical segment consists of various product lines built around its core competencies in cryogenics and pressure swing adsorption, but with a focus on the respiratory and biological users of the liquids and gases instead of the large producers and distributors of cryogenic liquids. Its products in the BioMedical segment include Respiratory Products, Cold Storage Systems, and Commercial Oxygen Generation Systems. Its respiratory oxygen product line consists of a range of medical respiratory products, including liquid oxygen systems and ambulatory oxygen systems, both of which are used primarily for the in-home supplemental oxygen treatment of patients with chronic obstructive pulmonary diseases, such as bronchitis, emphysema and asthma.
The Cold Storage Systems product line consists of vacuum insulated containment vessels for the storage of biological materials. The primary applications for this product line include medical laboratories, biotech/pharmaceutical, research facilities, blood and tissue banks, veterinary laboratories, large-scale repositories and artificial insemination, particularly in the beef and dairy industry.
The Company competes with Linde, Sumitomo, Kobe, Fives, Linde, Air Products, Praxair, Air Liquide, Taylor-Wharton International or Taylor-Wharton and CVA/INOX, Taylor-Wharton and Beijing Tenhai Industrial Cylinders, Acme Cr! yogenics,! Vacuum Barrier Corporation, and Ind-Burma Petroleum Company.
Advisors' Opinion:- [By Jake L'Ecuyer]
Top losers in the sector included Chart Industries (NASDAQ: GTLS), Jacobs Engineering Group (NYSE: JEC), and ABB (NYSE: ABB).
Top Headline
Merck & Co (NYSE: MRK) reported a 7% rise in its first-quarter profit. Merck's quarterly profit surged to $1.71 billion, or $0.57 per share, compared to a year-ago profit of $1.59 billion, or $0.52 per share. Excluding certain items, Merck earned $0.88 per share, up from $0.85 per share Its revenue dropped 4% to $10.26 billion versus $10.67 billion. However, analysts were estimating earnings of $0.79 per share on revenue of $10.43 billion. Merck reiterated its full-year earnings forecast of $2.15 to $2.47 per share. - [By Marc Courtenay]
Chart Industries (GTLS), which reports earnings on April 22nd, has been bandied about for months as a takeover target. It manufactures and supplies engineered equipment used in the production, storage, and end-use of hydrocarbon and industrial gases in the United States, the Czech Republic, China, Germany, and internationally.
- [By Vera Yuan]
Chart Industries (GTLS), which manufactures compressed and liquid natural gas tanks and heat exchangers, has detracted from performance during the third quarter as well as on a year-to-date basis. Longer term, the demand for Chart�� natural gas equipment should increase as significant new natural gas discoveries in the U.S. and overseas will likely keep prices in check relative to oil and diesel alternatives. In the short term, though, the market and infrastructure for these natural gas devices has been slower to develop in the U.S. than hoped. The company�� China-based operations have slowed significantly in keeping with that country�� current economic stumbles.
Top 5 Machinery Companies To Invest In 2014: Caterpillar Inc.(CAT)
Caterpillar Inc. manufactures and sells construction and mining equipment, diesel and natural gas engines, industrial gas turbines, and diesel-electric locomotives worldwide. It operates through three lines of businesses: Machinery, Engines, and Financial Products. The Machinery business offers construction, mining, and forestry machinery, including track and wheel tractors, track and wheel loaders, pipelayers, motor graders, wheel tractor-scrapers, track and wheel excavators, backhoe loaders, log skidders, log loaders, off-highway trucks, articulated trucks, paving products, skid steer loaders, underground mining equipment, tunnel boring equipment, and related parts. It also manufactures diesel-electric locomotives; and manufactures and services rail-related products and logistics services for other companies. The Engines business provides diesel, heavy fuel, and natural gas reciprocating engines for Caterpillar machinery, electric power generation systems, marine, petrol eum, construction, industrial, agricultural, and other applications. It offers industrial turbines and turbine-related services for oil and gas, and power generation applications. This business also remanufactures Caterpillar engines, machines, and engine components; and offers remanufacturing services for other companies. The Financial Products business provides retail and wholesale financing alternatives for Caterpillar machinery and engines, solar gas turbines, and other equipment and marine vessels, as well as offers loans and various forms of insurance to customers and dealers. It also offers financing for vehicles, power generation facilities, and marine vessels. The company markets its products directly, as well as through its distribution centers, dealers, and distributors. It was formerly known as Caterpillar Tractor Co. and changed its name to Caterpillar Inc. in 1986. Caterpillar Inc. was founded in 1925 and is headquartered in Peoria, Illinois.
Advisors' Opinion:- [By Eric Volkman]
Caterpillar (NYSE: CAT ) is keeping its quarterly dividend policy steady. For its first payout of 2013, the company will hand out $0.52 per share of its common stock on May 20 to shareholders of record as of April 22. That matches the distribution of the preceding three quarters. Before that, the company disbursed $0.46 per share.
- [By Blake Bos]
In this video, Motley Fool industrials analyst Blake Bos outlines three areas investors need to watch at Caterpillar (NYSE: CAT ) . First, the integration of acquisitions: Caterpillar has made some historically large acquisitions. How these acquisitions are integrated into the company and how synergies are achieved will be important. Second, commodity prices: One of Caterpillar's acquisitions was Bucyrus, a mining equipment company. While this expanded Caterpillar's presence in the mining industry, that same business is highly sensitive to commodity prices. If commodities fall, so will revenues from this segment. Lastly, Caterpillar is looking to roll out a new manufacturing system to help reduce costs. This could be important for its future growth in China where Caterpillar competes with Komatsu. Right now, Komatsu has the largest market share in China -- Caterpillar will need all the help it can get to successfully compete.
- [By Ben Levisohn]
Investors waiting for Caterpillar (CAT) to turn into a butterfly will have to wait a while longer.
The maker of heavy machinery said profits fell 44% during the third quarter, while earnings-per share dropped to $1.45, well below forecasts for $1.68. Caterpillar also slashed its guidance for full-year earnings to $5.50, down from $6.50.
It’s fair to say investors were expecting more. In the days ahead of the report, share of Caterpillar had traded up to the top-end of the range they’d been trading in for the last six months. Instead, Caterpillar’s stock has fallen 6.2% to $83.69 at 12:43 p.m. today, bringing it back towards the low end of the range.
Caterpillar also had the misfortune to report on a day when investors are concerned that China could take steps tighten credit. And with Caterpillar’s exposure to emerging markets, that’s likely hitting shares as well.
Caterpillar’s dismal report is weighing on other stocks machinery companies.�Terex�(TEX) has fallen 2.5% to $34.37, Joy Global (JOY) has dropped 1.1% to $53.91 and Manitowoc (MTW) is off 1.9% at $19.36.
- [By Rich Smith]
This series, brought to you by Yahoo! Finance, looks at which upgrades and downgrades make sense, and which ones investors should act on. Today, we'll be looking at why Caterpillar (NYSE: CAT ) got its target price cut, while Angie's List's (NASDAQ: ANGI ) was upped. But first, a quick look at why...
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